One-glance verdict
Undervalued
$36.77 our estimate vs market $10.68
Wall Street consensus: $11.50 (-68.7% lower than our fair-value estimate)
71% below our estimate, below the bear case
Fundamentals snapshot
Leggett & Platt, Incorporated
LEG · NYQ · Consumer Cyclical · Furnishings, Fixtures & Appliances
Current price
$10.68
52-week range
$7.86 - $13.00
Market cap
$1.46B
Balance sheet
Stretched
3.29x Stretched
Net debt $1.14B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Returns 25.2% on equity, ahead of 66% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Risk Forward P/E (10.5x) is higher than trailing (6.6x) - earnings are expected to drop.
- Risk Operating margin compressed from 9.4% to 5.1% over 3 years.
What this company does
Leggett & Platt, Incorporated
Leggett & Platt manufactures the essential inner workings for products you use every day, such as the metal springs in a mattress, the reclining mechanism in a chair, or the support system in a car seat. The company primarily earns money by selling these components in large quantities to other businesses in the bedding, furniture, and automotive industries, which then use them to build their finished goods. This means Leggett & Platt's success is closely tied to how many people are buying big-ticket items like new beds, furniture, and cars.
How the company got here
Leggett & Platt started in 1883 when J.P. Leggett invented a new kind of bedspring made from coiled steel. He partnered with his future brother-in-law, C.B. Platt, to manufacture and sell this invention, which was a more comfortable and durable alternative to the mattresses of the time. The company was officially incorporated in 1901 and began making the springs that go inside innerspring mattresses in 1933. Over many decades, it grew from a small partnership into a large, publicly traded company by expanding into various related products and acquiring other businesses.
What it actually does
You've likely used a Leggett & Platt product without even knowing it, as they make many of the hidden components inside products you use every day. The company designs and manufactures a wide variety of parts for bedding, furniture, and cars. Think of them as a key supplier to other manufacturers; for example, they make the innersprings for mattresses, the reclining mechanisms for chairs, and the support systems inside car seats. While they mostly sell to other businesses, they also make some finished goods that are sold in stores, like bed frames and carpet padding.
Bedding Products
This is the company's original and largest business area, making up a significant portion of its sales. It all starts with raw steel, which they process into rods and wires to create the innersprings that provide support in many mattresses. This segment also produces specialty foam, adjustable bed bases, and even entire private label mattresses for retailers (where the retailer sells the mattress under its own brand name). Their customers are typically mattress manufacturers and retailers.
Specialized Products
This part of the company focuses on creating components for vehicles and other industrial uses. A major product line is comfort systems for car seats, such as mechanical and air-powered lumbar support (the part of the seat that curves to support your lower back) and massage systems. They sell these parts to the big car companies and their suppliers. This segment also manufactures engineered hydraulic cylinders, which are used in machinery for construction and material handling.
Furniture, Flooring & Textile Products
This segment produces a wide variety of components for things you have around your house and office. For furniture, they make the metal mechanisms that allow chairs to recline and sofas to fold out into beds. For flooring, they create the carpet cushion and underlayment that go under your carpets and floors to make them softer and last longer. They also produce fabrics for various uses, including landscaping and construction.
What management is betting on now
The company is currently focused on a major restructuring plan to make its operations more efficient. This involves consolidating some of its manufacturing facilities, particularly in the Bedding segment, to create a more streamlined and cost-effective production and distribution network. Management is also concentrating on developing innovative, higher-value products to better meet the needs of their customers and the people who ultimately use the end products. A key financial goal is to generate strong free cash flow (the cash left over after paying for operating expenses and capital expenditures, which are investments in physical assets like machinery).
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q2
$78.50M
FY2024 Q3
$77.10M
FY2024 Q4
$100.50M
FY2025 Q1
$-6.50M
FY2025 Q2
$75.50M
FY2025 Q3
$110.10M
FY2025 Q4
$101.90M
FY2026 Q1
$-80.40M
Revenue
$918.20M
Net income
$20.00M
Diluted EPS
0.14
Operating cash flow
$-56.10M
Free cash flow
$-80.40M
Fetching…
Sources
Revenue
$938.60M
Net income
$25.20M
Diluted EPS
0.18
Operating cash flow
$121.50M
Free cash flow
$101.90M
Fetching…
Sources
Revenue
$1.04B
Net income
$127.10M
Diluted EPS
0.91
Operating cash flow
$125.90M
Free cash flow
$110.10M
Fetching…
Sources
Revenue
$1.06B
Net income
$52.50M
Diluted EPS
0.38
Operating cash flow
$84.00M
Free cash flow
$75.50M
Fetching…
Sources
Revenue
$1.02B
Net income
$30.60M
Diluted EPS
0.22
Operating cash flow
$6.80M
Free cash flow
$-6.50M
Fetching…
Sources
Revenue
$1.06B
Net income
$14.20M
Diluted EPS
0.10
Operating cash flow
$122.30M
Free cash flow
$100.50M
Fetching…
Sources
Revenue
$1.10B
Net income
$44.90M
Diluted EPS
0.33
Operating cash flow
$95.50M
Free cash flow
$77.10M
Fetching…
Sources
Revenue
$1.13B
Net income
$-602.20M
Diluted EPS
-4.39
Operating cash flow
$94.00M
Free cash flow
$78.50M
Fetching…
Sources
Is it cheap or expensive?
Fair value $36.77 vs current price $10.68
Wall Street consensus is the average analyst price target: $11.50 (-68.7% lower than our fair-value estimate).
Our most-likely fair value is $36.77 a share — about 244.3% above today's price of $10.68, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $1.1B. Interest coverage 3.3x.
Net debt
$1.14B
Interest coverage
3.29x
Leggett & Platt, Incorporated's profit covers its interest bill about 3.3 times over. which is stronger than most peers shown here.
Stretched
Worse cushion
Baseline
Better cushion
LEG
BASELINE
Leggett & Platt, Incorporated
Total debt $1.65B Interest coverage 3.29x This is the baseline the peer rows are being compared against.
Total debt $1.73B Interest coverage 6.72x +104% vs LEG Carries about 2.0x more debt cushion than LEG.
Total debt $1.79B Interest coverage 2.55x -23% vs LEG Carries about 1.3x less debt cushion than LEG.
What you should know
The case for and against LEG
3 Rewards
2 Risks
Rewards
-
Returns 25.2% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 10/10 years.
-
Trades at 6.6x P/E vs peer median 117.9x (94.4% cheaper).
Risks
-
Forward P/E (10.5x) is higher than trailing (6.6x) - earnings are expected to drop.
-
Operating margin compressed from 9.4% to 5.1% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
6.63x
Forward P/E
10.55x
P/B
1.40x
P/S
0.37x
EV/EBITDA
7.49x
PEG ratio
2.96x
Profitability
How much profit each dollar creates
Gross margin
18.5%
Operating margin
5.1%
Net margin
5.7%
ROE
25.2%
ROA
3.9%
Health
Liquidity and balance-sheet strength
Debt / equity
1.58x
Current ratio
2.33x
Quick ratio
1.38x
Total debt
$1.65B
Total cash
$510.50M
Growth
How the business has been compounding
Revenue TTM
$3.95B
Revenue 5Y CAGR
-5.4%
EPS TTM
1.61
EPS 5Y CAGR
-9.4%
Cash flow
How much cash the business throws off
Operating CF TTM
$275.30M
Free CF TTM
$281.00M
FCF margin
7.1%
Dividend
Shareholder payout
Yield
1.9%
Payout ratio
12.4%
Last ex-div date
2026-06-15